A consumer downloads 4 movies and 3 apps per week. Suppose the price is $4 per movie and $4 per app, and the marginal utility this consumption level is 14 for a movie and 8 for an app.

Instructions:Round your responses to one decimal place.

a. Calculate marginal utility per dollar.

0.875

0.875 Incorrect

per movie

Not attempted

per app

b. Is this optimal consumption?

• no
• yes

c. If not, how should they change their consumption to maximize?

• Do nothing. This consumer is consuming optimally.
• Increase the consumption of movies.
• Increase the consumption of apps.